How do I price my online course?
Are you wondering, “How do I price my online course?”
It’s easy to get stuck trying to figure out how to perfectly position your pricing. I get it. Pricing your online course is a big decision.
Pricing determines many things in your business like:
- What type of budget you have for advertisement to attract the people that you want to bring into your course
- The commitment level of the client you are attracting – Are you bringing in somebody that’s really, really committed or somebody who is brand new? The higher the price point, typically the more invested the client is.
- The profit in your business
- The revenue you have available to fund growth in your business
Pricing your online course is a strategic decision based on a simple formula I’m going to share with you and it comes down to this:
Are you in the quantity game or the quality game?
Quantity Game: When you are playing the quantity game, you need to get a lot of people in your program to make your revenue goals.
Quality Game: If you’re playing the quality game, you need fewer clients who are ready to invest at a higher level (typically to get deeper level results with you).
So let’s take a look at an illustration to help you determine which you are in:
When you’re pricing, you need to think about two things:
- The number of people you need to attract into your course to hit your revenue goal
- The ideal price point that aligns with the value that your audience assigns to the result your course delivers
You can determine ideal pricing by working backwards from your revenue goal. It’s important to work through scenarios that help you determine what your minimum price point needs to be.
#1: Work backwards from your revenue goal
The first thing I want you to do is to work backwards from what you want your revenue goal to be. When I ask people in our community what their revenue goals are, I usually hear “I want to add $100,000 to my revenue”.
If you price my course at $100 (which is on the really low end of the spectrum), you’ve got to attract 1,000 people to come into your program to hit your $100,000 revenue goal.
$100,000 Revenue Goal / $100 course price = 1,000 students needed
Now, if you contrast it with pricing your online course at $1,000, you only need to get 100 people to say yes to the course to make your $100,000 revenue goal.
$100,000 Revenue Goal / $1,000 course price = 100 students needed
This is a really big difference in enrollment goals. Pricing dramatically influences how many people you need to attract into your launches and, ultimately, enroll in your course.
If you don’t already have a large enough following to attract the number of people you need to hit your goal, you also need to factor in your budget for traffic generation.
#2: Paid vs. Organic Traffic
Once you start crunching the numbers to figure out the amount of people you need to enroll in your course to hit your revenue goals, you might start wondering “Where do I find 1,000 people to enroll?”
If you already have an existing following or people that are waiting for the product that you’re offering, then you may not need to factor in a budget for paid traffic. This is not the case for most people launching an online course.
99% of the people that I work with in our course community need to attract people into their launch using free and paid traffic. Creating an online course is one of the most powerful ways to grow a following.
If this sounds like you, that means you’ve got to price your course so that you have enough margin to budget ad dollars to attract students using paid traffic strategies like Facebook or Instagram ads.
The good news is when you position the course at $1,000, you’ve got enough room in your price point to advertise to fill your courses. Bonus: A higher price point also means you need less enrollments to hit your revenue goals.
So are you going to be in the quantity game where you’ve got to go out and find lots and lots of people to generate the impact you want to generate?
Or are you going to be in the quality game where you need to find fewer people who want to do the work with you to get the results they want?The key to positioning your course as high value is to focus on creating the results that your ideal clients want. Click To Tweet
This is exactly the work we do together in our Create 6-Figure Courses community. We work backwards from the result your people will invest in and create a course that delivers that result.
Your pricing determines not just the revenue you make, but also the amount of money you have available to fund the growth of your business.
Where do you want to be? What is your price point? What is your revenue goal and how many students do you need to hit that goal?
Share in the comments because I’d love to hear it!